Michael Gove: This has been a passionate, at times, but also thoughtful debate, and I thank every Member who spoke not only for the degree of ardour they displayed on behalf of their communities, but for their command of detail in laying out the challenges that everyone in local government faces.
Like speakers on both Front Benches—indeed, I think every speaker did this—I wish to thank those in local government, council workers and elected representatives, who work so hard on our behalf in every community. Our democracy depends on them. As the Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley) pointed out, those in local government have faced unprecedented challenges in recent years, not just with the covid pandemic and the response to the public health challenges that that provoked, but also because of the way the war in Ukraine has meant not just inflationary increases, but new demands on them as we welcomed to our hearts and into our homes Ukrainian refugees in record numbers. Local government has been asked to step up, and has shown leadership, commitment and the very best of public service.
A number of speakers pointed out the essentially unsatisfactory nature of the way that local government finance is allocated, due to the complexity of the formulas over time. Indeed, the Chair of the Levelling Up, Housing and Communities Committee pointed out the way that a number of historical kinks in the architecture of local government finance mean that any Government face challenges in ensuring that money is distributed as effectively as it might be. I will not weary the House by going through the formula for tariffs and top-ups of business rates, which are on page 20 of the report, but for anyone who wants to look at them, we can all see how complex that system is.
Within that context, in this year’s local government report we have been able to increase core spending power overall by £5.1 billion, secure an additional £1.7 billion of additional grant funding, ensure additional support for adult and children’s social care, ensure a minimum 3% increase in core spending power for every local authority without the need for council tax increases, and ensure that the most deprived local authorities receive a 17% increase. It was notable that while there were specific requests from individual Members, all of which were made well, overall there was a recognition of the constraints under which all Governments are operating, and a recognition that within the circumstances we face, at the last spending review local government secured additional resources to ensure an overall core spending power just shy of £60 billion.
I thank Members from my own party for their comments. My right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes), and my hon. Friends the Members for Waveney (Peter Aldous) and for West Dorset (Chris Loder) are all highly effective advocates for their constituencies. My right hon. Friend the Member for South Holland and The Deepings reminded us of local government’s history, and the vital importance of the institutions that safeguard our communities. He made a point consistent across the Benches, which is that rurality needs to be a key feature when thinking about local government funding. That is why in the settlement that he laid before the House, the  Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for North East Derbyshire, increased the recognition of rurality in the way we distribute funds.
I acknowledge that, as my right hon. Friend the Member for South Holland and The Deepings, my hon. Friend the Member for Waveney and—particularly powerfully—my hon. Friend the Member for West Dorset pointed out, more is required to be done. Indeed, the name of my hon. Friend the Member for West Dorset is never far from the lips of the leader of Dorset Council, Spencer Flower, as an object of praise for his assiduity in pressing the case for his constituents. I am more than happy to say that his persistence and passion has not gone unnoticed, and I would be delighted to meet him and the representatives who he would like to come to the Department to discuss the concerns he has specifically raised. I also extend that invitation to my right hon. Friend the Member for South Holland and The Deepings and my hon. Friend the Member for Waveney.
My right hon. Friend the Member for South Holland and The Deepings made a point about internal drainage boards and the challenges they face—[Interruption.] I will come to Labour Members in a moment. We will ensure that internal drainage boards are supported for the work they do. My hon. Friend the Member for Waveney pointed out the particular challenges faced by coastal communities, and they are at the heart of many of the strategies in the levelling-up fund and the levelling-up White Paper that we are bringing forward.